dYdX Clears the Air on its Investor 3AC, States Three Arrows Capital's Situation Does

Summary:

Three Arrows Capital was an early investor of dYdX.
The team at dYdX has released a statement clarifying that the project is unaffected by the financial situation facing Three Arrows Capital.
Nexo’s co-founder has also clarified that they have zero exposure to Three Arrows Capital.

The ongoing insolvency facing Three Arrows Capital due to the crypto hedge fund being liquidated to the tune of hundreds of millions of dollars has caused a far-reaching ripple effect, extending to projects it had invested in, as well as partners such as Deribit.

It is with this background that the team at the decentralized derivatives exchange of dYdX has released a statement clarifying how the Three Arrows Capital situation affects its operation since the latter was an early investor of the project.

According to the statement by the dYdX team, ‘it is important for the organization to continue being fully transparent with the community.’ They added:

While Three Arrows Capital invested in dYdX, our liquidity and exchange operations have not been and will not be affected by current or future developments involving Three Arrows Capital.

As always, we are available to address any additional concerns from our community and we will continue to be transparent on all things dYdX.

NEXO’s Co-founder Clarifies the Company has No Exposure to Three Arrows Capital.

In a similar move, the co-founder of Nexo, Antoni Trenchev, told Bloomberg TV that the crypto company had zero exposure to Three Arrows Capital. Mr. Trenchev explained that at one point, Nexo declined to provide a loan to the troubled hedge fund. He explained:

We have zero exposure to 3AC.

A few years ago they came to us and asked for an unsecured loan, which we did not feel comfortable providing because it goes against our risk-management parameters.

We Are in the Process of Working this Out – Su Zhu

In a tweet earlier this week, the co-founder of Three Arrows Capital, Su Zhu, announced that the company was ‘in the process of communicating with relevant parties and fully committed to working this out.’ His tweet can be found below.